Employer Group Sues Biden Agencies Over Mental Health Regulation

Federal agencies overstepped their authority when they finalized a recent rule aimed at evaluating parity between employers’ mental health and medical benefits, according to a new lawsuit brought by the ERISA Industry Committee.

The final rule is impermissibly vague and violates the Administrative Procedure Act, the group alleged in the complaint filed Friday in the US District Court for the District of Columbia.

The case has a better chance of success after the US Supreme Court in June overturned the Chevron doctrine,which called on courts to defer to reasonable agency interpretations where the law is silent or unclear. The decision ...